“This is $1,031,420 (11.5%) higher than the estimate contained in the prospectus on an annualised basis and 16.9% lower than the previous quarter as detailed below,” it said.

“The principal reasons for this lower quarter royalty were the lower levels of production and lower average $A oil price for the 3 months ended 31 December 2004. Natural gas production was lower due to seasonal conditions.”

BSO’s net share of oil for the quarter was 8.7 million barrels of oil (mmbo) compared to 9.9 mmbo for the September quarter.

The average realised sales price was A$60.60 / bbl against the previous $64.08 /bbl.

Gas production was down almost 24% due to reduced demand over the summer.

BSO’s earnings are based on the royalty Lewis G Weeks achieved when he helped BHP and Esso to find the first oil in Bass Strait.